Bullish or Bearish? Week of Jan. 9, 2017

Here are the latest technical and sentiment indicators:

Technical Indicators (daily chart)

S&P 500 is above its 50-, 100-, and 200-day MA = Bullish

MACD (S&P 500; 19,39,9) is above the zero line = Bullish

MACD (S&P 500; 19,39,9) is even with its signal line = Neutral

S&P 500 support @ 2240, 2225, and 2200

 

Sentiment Indicators (+RSI)

II survey: (Jan. 3): 60.2% Bulls; 18.4% Bears = Bearish

AAII survey: (Jan. 4): 46.2% Bulls; 25.2% Bears = Neutral

VIX: @ 11.32 = Bearish

RSI: (S&P 500) @ 64.51 = Neutral

Comment: When you’re in a market bubble, it feels really good, and most don’t realize they’re in one until it’s too late. My technician friends say we’re at rarified overbought levels, and I believe them. Nevertheless, it’s too dangerous to short bubbles so enjoy the ride while it lasts. Last week, buying on the dip worked as the S&P bounced off of 2240. Another clue we’re in uncharted territory is a steady transportation stock like CSX is acting like a 1999 Internet stock. Unreal. 

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